Ag sector keeping close watch on debt ceiling talks

Washington, D.C.

Wikipedia commons

Debt ceiling talks are set to begin Tuesday afternoon with several high-level congressional leaders meeting with President Biden. The markets and producers everywhere will be closely watching.

Leadership at Southern Ag Credit warns a U.S. default would affect every farm, especially if they have an operating loan.

“Any operator we have with an annual operating loan, whether that be cattle, whether that be row crop, right now is facing interest rates that are more than two-times where they were at the beginning of last year. We also have a number of long-term real estate loans that will re-price this year as their pricing, original pricing, expires—they will be facing much higher interest rate costs,” Phillip Morgan, CEO of Southern Ag Credit said.

On Capitol Hill, farm leaders are concerned about the approaching June 1st deadline.

“Fed Reserve Chair Jerome Powell said, no one should assume that the Fed can really protect the economy and financial systems and our reputation globally, from the damage that a U.S. default might inflict. We shouldn’t even be talking about a world in which the US doesn’t pay its bills,” Senat Ag Committee chair Debbie Stabenow said.

Tuesday’s meeting will take place at the White House and will be attended by The President, House Speaker Kevin McCarthy, Senate Democratic Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell and House Democratic minority leader Hakeem Jeffries.

Related Stories
Throughout the growing season, Mosaic advises farmers to monitor crop nutrition actively. Regular soil testing and plant tissue analysis can help identify any deficiencies or imbalances.
House lawmakers find themselves at odds over the latest wildlife conservation proposal, the America’s Wildlife Habitat Conservation Act.
The Professional Dairy Producers just launched “Your Farm - Your Footprint,” a new, farmer-led approach to environmental stewardship in the dairy industry.

LATEST STORIES BY THIS AUTHOR:

However, economists say land values could falter if commodity prices fall in the New Year.
With the New Year comes new ideas, and lawmakers are still trying to find ways to fund the Farm Bill.
The United Soybean Board representatives say export and trade development is critical for increasing international demand.
It is National Farm Safety and Health Week—a time dedicated to recognizing the critical importance of safety on the farm. The National Education Center for Ag Safety (NECAS) usually hosts this week-long event during mid-September so farmers are reminded to prioritize their safety during the harvest season.
Analysts with the Propane Education & Research Council say the outlook for propane prices is positive for the fall harvest season.
The quality of U.S. beef cattle has come a long way in the last two decades, but an expert with the Oklahoma State University Extension says there is still room for improvement.